Japan’s life insurers offer answers to global peers
Thursday, 07 26 2018, Category: Insurance and Reinsurance, Country: Asia
In an era of perennially low interest rates life insurers should look to Japan, where the industry has remained largely profitable despite facing consistently low rates for over two decades, Moody’s says.
The report states that Japanese life insurers have adjusted to perpetually low rates by developing highly-effective liability management strategies.
Major differences between Japanese insurers’ strategies and those of global peers is strong pricing power and the use of standard mortality rates, allowing the industry in Japan to maintain particularly high margins on protection-type products.